Seres Therapeutics Inc (MCRB) Announces Q3 2023 Financial Results and Strategic Restructuring
Seres Therapeutics Inc (NASDAQ:MCRB) reported Q3 2023 financial results, including VOWST net sales of $7.6 million.
The company announced a strategic restructuring plan to focus on VOWST commercialization and SER-155 Phase 1b study completion.
The restructuring includes a 41% workforce reduction, expected to result in annual cash savings of approximately $75-$85 million in 2024.
Seres Therapeutics Inc (NASDAQ:MCRB) ended Q3 2023 with $169.9 million in cash, cash equivalents, and investments.
On November 2, 2023, Seres Therapeutics Inc (NASDAQ:MCRB), a leading microbiome therapeutics company, announced its financial results for the third quarter ended September 30, 2023. The company reported VOWST net sales of $7.6 million, exceeding forecasted expectations. VOWST is a product commercialized by Nestle Health Science in collaboration with Seres, indicated to prevent the recurrence of Clostridioides difficile infection (CDI) in adults.
Strategic Restructuring and Financial Highlights
The company also announced a strategic restructuring plan to focus resources on the commercialization of VOWST and the completion of the SER-155 Phase 1b study. The restructuring includes a 41% reduction in the current workforce, which is expected to result in annual cash savings of approximately $75-$85 million in 2024. The company anticipates a one-time charge of $5.0-$5.5 million in the fourth quarter of 2023, primarily related to the workforce reduction.
Following a thorough review of the Company, we have decided to implement a significant corporate restructuring to substantially reduce expenses and prioritize the commercialization of VOWST. Given the realities of this challenging financial environment for biopharmaceutical companies, we believe that concentrating our resources on VOWST offers an attractive opportunity for targeted revenue growth, while operating in a more capital efficient manner." - Eric Shaff, President and Chief Executive Officer at Seres.
Financial Results
Seres Therapeutics Inc (NASDAQ:MCRB) reported a net loss of $47.9 million for the third quarter of 2023, compared with a net loss of $60.0 million for the same period in 2022. The company ended the third quarter of 2023 with $169.9 million in cash, cash equivalents, and investments, compared with $181.3 million at the end of 2022.
Future Outlook
The company's restructuring is expected to yield significant savings and position it for longer-term business sustainability. Seres anticipates that its cash balance, in conjunction with the anticipated savings from the restructuring and the expected receipt of the $45 million Tranche B under its existing senior secured debt facility with Oaktree Capital Management, L.P. (Oaktree), will support its operations into the fourth quarter of 2024.
The company is eligible for Tranche B under the Term Loan Facility upon the achievement of trailing 6-month VOWST net sales of at least $35 million, no later than September 30, 2024, and other applicable conditions.
Explore the complete 8-K earnings release (here) from Seres Therapeutics Inc for further details.
This article first appeared on GuruFocus.
